Fixed Income is hard..... do not know which way to go

[unclemick]

That's Target Retirement Income now as I got older since 2006.

Heh heh heh -

 

[Echard]

Sounds like you are back dooring your way into a SORR strategy - managing volatility. For that I direct you to lots of info on the inter webs including some good stuff from Kitces.

You made me aware of him awhile back, and I have in fact implemented a bond tent as a result of that article and other research I've done. Thank you for that.

I don't use TIPS because most of my investments are post tax and I don't like the potential bookkeeping headaches (although I do own one).

 

[COcheesehead]

You made me aware of him awhile back, and I have in fact implemented a bond tent as a result of that article and other research I've done. Thank you for that.

I don't use TIPS because most of my investments are post tax and I don't like the potential bookkeeping headaches (although I do own one).

I am not a TIPS guy either.

 

[tulak]

I am not a TIPS guy either.

I’m loving TIPS, to the point that I will use them to completely hedge against SORR as my bond tent. I created a thread here describing my approach: https://www.early-retirement.org/forums/f28/aa-with-tips-for-fi-119252.html

I’ve improved the model since the original post, where I test every 30 and 45 year period since 1871. The results are interesting, showing that the optimal ladder size is 5-6 years with no failures for a 30 year retirement using 4% WR.

 

[Mulligan]

I’m loving TIPS, to the point that I will use them to completely hedge against SORR as my bond tent. I created a thread here describing my approach: https://www.early-retirement.org/forums/f28/aa-with-tips-for-fi-119252.html



I’ve improved the model since the original post, where I test every 30 and 45 year period since 1871. The results are interesting, showing that the optimal ladder size is 5-6 years with no failures for a 30 year retirement using 4% WR.

I have recently toed into 5 year TIPs. Newbees considering these need to understand they dont operate like IBonds at all. And the further one extends themselves out duration wise, the larger one is exposed to possible considerable capital losses if not able to hold until maturity. “Phantom tax” in taxable accounts is also something to be aware of.

 

[tulak]

I have recently toed into 5 year TIPs. Newbees considering these need to understand they dont operate like IBonds at all. And the further one extends themselves out duration wise, the larger one is exposed to possible considerable capital losses if not able to hold until maturity. “Phantom tax” in taxable accounts is also something to be aware of.

True, always know what you’re buying. TIPS are not IBonds.

I buy TIPs in tax deferred accounts and will hold to maturity. Makes it easier.